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2. Rosa and Gabriel own two Mexican grills in a large city in Texas. Rosa has primary responsibility for the grill in the suburbs, and

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2. Rosa and Gabriel own two Mexican grills in a large city in Texas. Rosa has primary responsibility for the grill in the suburbs, and Gabriel has primary responsibility for the grill in the downtown area. The menu items and product costs are the same in both grills, but the market in the downtown area demands lower menu prices than that in the suburbs. So, Rosa has set her desired product cost percentage at 28%, and Gabriel's desired product cost percentage is 82% since he can't charge as much as Rosa. Rosa likes to use the product cost percentage method to price her menu items, and Gabriel likes to use the factor method. Help both of them determine their pre-rounding selling prices. Rosa and Gabriel's Mexican Grill (Suburb-Rosa) Desired Product Cost Percentage 28% Product Cost Percentage Pricing Method Desired Product Cost Percentage Pre-rounding Selling Price Item Steak Fajitas Chicken Pajitas Carne Asada Cost of Product ($) 1.50 4.00 1.25 Test Your Skills 289 Desired Product Cost Percentage Item Cheese Enchiladas Beef Enchiladas Enchiladas Verde Chili Rellenos Tacos Bean Chalupas Tortilla Soup Cost of Product ($) 2.00 2.50 2.00 Pre-rounding Selling Price 2.75 0.30 0.25 0.30 Rosa and Gabriel's Mexican Grill (Downtown-Gabriel) Desired Product Cost Percentage 82% Factor Method Factor Cost of Product ($) 4.50 4.00 Pre-rounding Selling Price Item Steak Fajitas Chicken Fajitas Camne Asada Cheese Enchiladas Beef Enchiladas Enchiladas Verde Chili Rellenos Tacos Bean Chalupas Tortilla Soup 4.25 2.00 2.50 2.00 2.75 0.80 0.25 0.30

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